Hello All,

Using a dataset of 600,000 observations and 60 variables I ran regress and then tested for misspecification using the ovtest. The resulting F test had a P-value of 0.0000.
This initial regression had a log dependent variable, 3 continuous independent variables (2 of which were logged) as well as 2 dummy variables to represent categorical variables.

Following the ovtest, polynomials and interaction terms between the continuous variables and the dummies were added to the regression. Once again I ran regress, although in this case, the F was lower,
the P value was still 0.0000.

Would be grateful for any advice as to how to specify this model.

Best,

Ciaran